Property for sale in Cyprus
Cyprus, being a sizable Mediterranean island, offers extensive coastlines adorned with stunning beaches, alongside a serene lifestyle bathed in sunlight, and upscale properties available at reasonable prices. These appealing factors make it highly attractive for expatriates seeking to invest here, with many families opting to either relocate permanently or acquire a second home on the island.
This article will help you to deal with all details of acquiring property for sale in Cyprus.
The benefits of getting real estate in Cyprus
Investing in Cyprus offers numerous benefits:
- The housing market is particularly favorable for foreign investors.
- Significant investments in real estate can lead to acquiring legal residency or even a Cypriot passport.
- Property taxes are low, enhancing investment potential.
- Cyprus boasts a large international community, fostering cultural diversity.
- With world-class beaches, the country offers an attractive lifestyle.
- Excellent transportation connections ensure easy access to the rest of Europe.
Real estate market
The real estate sector has long been a driving force behind Cyprus’s economic prosperity. In 2018, it played a pivotal role, contributing a substantial 38.5% to the country’s annual growth rate and accounting for 16% of the Gross Value Added.
Despite the challenges posed by the COVID-19 pandemic, the Cypriot property market is demonstrating encouraging signs of recuperation. Its global reputation as a hub for international investment remains strong.
Currently, Limassol leads the market with a 37% share, followed by Nicosia, which has experienced the most significant year-on-year sales increase of 10%. Foreigners continue to be the primary drivers of the sector, representing 47% of total transaction activity.
The island’s real estate market’s resilience and ongoing recuperation, coupled with its attractiveness to international investors, point towards a promising future for this vital sector of the Cypriot economy.
Can foreigners buy properties for sale in Cyprus?
Acquiring housing on the island is accessible to individuals from around the world. The primary requirements include:
- Buyers must be at least 18 years old.
- A clean criminal background check is mandatory.
- Formal approval from the Council of Ministers is required to finalize the purchase.
Is Cyprus cheap to buy property?
Compared to other countries, Cyprus presents an appealing proposition for real estate investment with its relatively affordable property prices. For instance, a spacious three-bedroom villa can be acquired for approximately €350000.
Is it a good idea to buy property in Cyprus for sale?
Investing in Cyprus real estate offers a unique chance to acquire residency in this stunning island nation. With a minimum investment of €300000, you and your family can not only secure a beautiful second home but also obtain residency permits. These permits grant you the right to legally reside, work, and study in Cyprus, opening doors to a new lifestyle and a wealth of opportunities.
What is the average price of the house?
The cost of real estate in Cyprus for sale varies depending on the specific location and type of property. For instance:
- Paphos: A two-bedroom townhouse is typically priced around €160000, while a three-bedroom villa with a pool starts from €220000.
- Larnaca: A comfortable two-bedroom apartment can be found for approximately €180000, while a spacious five-bedroom villa is available from €350000.
Across the island, a wide range of affordable real estate options caters to diverse budgets and preferences.
What is the cheapest place to live in Cyprus?
With a budget of €50000, you can acquire a small studio apartment (40-50 m2) in a village near Limassol. As the most expensive city in Cyprus for real estate, Limassol offers limited options at this price point. Closer to the city center, a 35-40 m2 apartment would cost around €100000.
In contrast, the suburbs of Paphos provide more value for your money. For €50000, you can find a more spacious property with an area of 50-60 m2. Furthermore, for €80000, you can purchase a significantly larger apartment ranging from 60-100 m2, offering both affordability and proximity to the city center.
In conclusion, Paphos presents a compelling alternative to Limassol, allowing you to maximize your budget and acquire a larger property in a desirable location.
Where to buy properties for sale in Cyprus?
Several factors influence the optimal location for your Cyprus investment, aligning with your long-term goals:
- Residency Plans: Do you intend to reside permanently in Cyprus, utilize the property as a vacation home, or generate rental income?
- Investment Thresholds: Are you seeking to meet the minimum investment requirements for the Cyprus Residency by Investment Program?
It’s crucial to recognize that the island is divided into two distinct regions: Northern Cyprus (Turkish) and Southern Cyprus (Greek and part of the European Union).
Due to property ownership disputes and associated risks, most foreigners purchase housing within the four main cities of Southern Cyprus: Nicosia (Southern part), Larnaca, Limassol, and Paphos.
Ultimately, the best city for your investment depends on your individual lifestyle preferences and budget.
What are the best cities to buy real estates in Cyprus?
Limassol: Vibrant City Life with Strong Rental Demand
Ideal for active families, Limassol boasts excellent international schools, a cosmopolitan atmosphere, and a wide array of shops, restaurants, and entertainment options. The city’s thriving economy and limited housing supply create high demand for rentals, making it an attractive location for property investment. However, living costs in Limassol tend to be higher compared to other cities.
Nicosia: Stable Rental Market, Inland Location, divided between the Republic of Cyprus and Turkish Republic of Northern Cyprus
As the capital city, Nicosia offers a stable rental market driven by a strong workforce. Long-term rental opportunities present promising investment potential. However, Nicosia’s inland location without direct access to the sea may not suit those seeking a holiday home or short-term rental property.
Larnaca: Affordable Beachside Living with Growth Potential
Larnaca provides a relaxed beachside lifestyle with convenient access to the airport. Its affordability compared to Limassol and Paphos, coupled with emerging investment opportunities, makes it an attractive option for budget-conscious buyers.
Paphos: Tranquility, Convenience, and Value
Paphos caters to frequent travelers with its proximity to the airport and excellent transportation links. Its relatively lower real estate and property management costs, along with a laid-back environment dominated by private houses, attract individuals seeking a peaceful lifestyle with convenient access to Limassol for work or leisure.
How to get a residency permit by a real estate purchase in Cyprus?
To acquire a residency permit in Cyprus through real estate investment, you need to participate in the Cyprus Residency by Investment Program and commit to purchasing real estate worth at least €300000.
What are the property taxes and fees in Cyprus?
Immovable Property Tax: Eliminated starting from January 1, 2017.
Municipality Tax: Assessed based on the property’s value according to the most recent government valuation (as of January 1, 2018). Rates are determined by the municipality and typically range from 0.1% to 0.2% annually.
Sewerage Tax: Computed based on the property’s value per the latest government assessment (as of January 1, 2018). Rates are established by the local sewerage board and usually fall between 0.05% and 0.3% annually.
Refuse Collection Fee: Municipalities or local authorities charge an annual fee for regular refuse collection, varying according to the property’s size and the municipality.
Capital Gains Tax: A 20% capital gains tax is levied on the profit derived from property disposal.
Inheritance Tax: There is no inheritance tax, as estate duty was abolished in 2001.
What is the purchasing process of buying real estate for sale in Cyprus?
When considering buying property on this island, it’s important to follow several steps outlined in your checklist:
- Reserve your preferred property by paying a non-refundable fee, securing it for a set period.
- Engage a lawyer to assist you with legal matters surrounding your investment.
- Your lawyer conducts due diligence checks to verify property ownership and the transferability of the title deed.
- Draft and negotiate contracts of sale with the guidance of your lawyer.
- Apply for a reduced VAT rate of 5% if the property is intended as your primary residence.
- Register your Contract of Sale at the Land Registry Office.
- Apply for permission to purchase immovable property in Cyprus.
- Finalize the transfer of title deeds at the Land Registry Office.
What are the top recommendations when buying properties in Cyprus for sale?
It’s crucial to heed the following advice:
- Secure the services of a qualified real estate lawyer based in Cyprus.
- Verify that the property is not embroiled in any ownership disputes, particularly common in real estate transactions in Northern Cyprus.
- Utilize a real estate agency to inspect the property thoroughly, guarding against potential overpriced.
- Compile a detailed inventory noting any existing damages to the property and identify necessary renovations or construction work.
- Assess the accessibility of utilities and services, particularly if the intention is to rent out the property.
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